Correlation Between Calamos Short-term and American Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and American Funds at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calamos Short-term and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and American Funds Capital, you can compare the effects of market volatilities on Calamos Short-term and American Funds and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Calamos Short-term with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and American Funds.
Diversification Opportunities for Calamos Short-term and American Funds
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and American is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and American Funds Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Capital and Calamos Short-term is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Calamos Short Term Bond are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Capital has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and American Funds go up and down completely randomly.
Pair Corralation between Calamos Short-term and American Funds
Assuming the 90 days horizon Calamos Short-term is expected to generate 3.82 times less return on investment than American Funds. But when comparing it to its historical volatility, Calamos Short Term Bond is 5.13 times less risky than American Funds. It trades about 0.16 of its potential returns per unit of risk. American Funds Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,620 in American Funds Capital on September 2, 2024 and sell it today you would earn a total of 1,276 from holding American Funds Capital or generate 22.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. American Funds Capital
Performance |
| Timeline |
| Calamos Short Term |
| American Funds Capital |
Calamos Short-term and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and American Funds
The main advantage of trading using opposite Calamos Short-term and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, American Funds can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Funds will offset losses from the drop in American Funds' long position.| Calamos Short-term vs. Lord Abbett Small | Calamos Short-term vs. Heartland Value Plus | Calamos Short-term vs. Mid Cap Value Profund | Calamos Short-term vs. Vanguard Small Cap Value |
| American Funds vs. Pimco Diversified Income | American Funds vs. Massmutual Premier Diversified | American Funds vs. Oppenheimer International Diversified | American Funds vs. Pioneer Diversified High |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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